Business Essentials: Marketing Mix Strategies for Coffee Shop Expansion in Germany

This document discusses the marketing mix strategies for expanding a coffee shop in Germany. It explores the cultural considerations and structural challenges of expansion, as well as the application of financial information for evaluating profitability and liquidity. The document provides insights into the business essentials of marketing and development practices.

BUSINESS ESSENTIALS, UK

Executive Summary
Business organisations can undergo continuous revenue generation as well as growth
with proper business management and development practices. Marketing of products
as well as well as the development of marketing plan contributes towards business
development practices. Marketing mix strategies are developed as well as directed in a
way towards substantial growth as well as the development associated towards the
business organisation. Among all other countries in Europe, Germany stands out to the
most effective one in terms of GDP as well as other statistics. Statistical research
indicates that the German economy it undertook a major expansion in the previous
period which makes Germany a favorable location for business growth and
development

Table of Contents
Introduction.................................................................................................................................. 4
Research as well as decision regarding expansion Marvin and Smith's coffee shop in the
European Union........................................................................................................................... 4
Justification.................................................................................................................................. 6
Structural challenge of expansion................................................................................................7
Marketing mix strategy in relation to the coffee shop expansion plan........................................8
Organisation Culture.................................................................................................................... 9
Application of financial information towards evaluation of impacts of profitability and liquidity
on decisions making.................................................................................................................. 10
Conclusion................................................................................................................................. 11
Reference List:.......................................................................................................................... 12

Introduction
Application, as well as development of various business practices, plays an important
role in appropriate business functioning. Business organisations can undergo
continuous revenue generation as well as growth with proper business management
and development practices. Marketing of products as well as well as the development of
marketing plan contribute towards business development practices. Marketing mix
strategies are developed as well as directed in a way towards substantial growth as well
as the development associated towards the business organisation. Strategies
associated with marketing mix consists certain sets of actions, tactics or certain specific
guidelines that a company uses regarding promotion of its brand or products associated
with the targeted market.
Concepts associated with marketing mix consists of 4Ps, which typically forms a typical
marketing mix plan. Marketing mix strategy includes Product, Price, Promotion, and
Place. However, in recent scenario concepts of marketing mix fundamentals consists of
several other Ps which includes Packaging, Positioning, People and even Politics as
vital mix elements. This study lays sufficient emphasis towards identification as well as
an implementation of marketing mix strategies towards business development
associated with Marvin & Smith's Coffee Shops in the UK. This study lays sufficient
emphasis as well as the contribution towards marking fundamentals as well as business
expansion.
Research as well as decision regarding expansion Marvin and Smith's
coffee shop in the European Union
It is observed from the case study that Marvin and Smith’s coffee shop has established
itself strongly in terms of promotion of strong fair trade and equality. Since its opening
and establishment, it has successfully opened two coffee shops additional in as well as
around London. Hank and Patty have decided to focus on an overseas expansion plan.
Bagautdinova et al. (2014, p.75) mentioned that Expansion of business is necessary for
continuous profit as well as revenue generation along with long-term business.

Figure 1: Economic growth rate of Germany
(Source: .globalprice.info , 2017 )
Studies, as well as research on various factors, indicate that Germany in comparison
with all other European Union emerges as the good marketplace for new business.
Good as well as developed business in Germany is contributing towards the attraction
of business markets. It also increases sufficient amount of scope for new and emerging
markets. The most important fact associated with business development in Germany is
that it requires young as well as hardworking population. As per research as well as
statistical figures, it is observed that economic growth in Germany can be affected
negatively as a result of the ageing population. As per forecast the percentage of an
aging population is estimated to rise to 32.3% in 2050, which will seriously reduce as
well as contract the working age population by around 15.2 million. As a result,
Germany will continuously require young people as well as the entrepreneur to carry out
its business operations. It is also worth noting that Germany has highest employment
rate in European Union

Figure 2: Unemployment rate in Germany
(Source:.globalprice.info , 2017)
In due consideration with figure 2, it is observed that unemployment rate in Germany is
undergoing continuous reduction which implies sufficient scope as well as opportunities
for new markets as well as business. Growth of business is associated with
employment. Business cannot undergo proper growth without money in the hands of its
citizen, which comes from employment
Justification
Logistical considerations
Research as well as analysis of various factors contribution as well as increment of
GDP mainly came from net trade (0.4 percentage points) and fixed investment (0.1
percentage points). Also, changes insufficient amount of inventories added 0.4
percentage points to growth
Statistical research, as well as figures, clearly indicate that quarter wise expansion as
well as development rose to about 1.7 percent which is much faster in comparison to
1.0 percent in June. The imports in Germany went up at a slower rate at 0.9 percent
(from 2.4 percent). The increments associated with the Gross capital fixed formation is
rising and went up to about 0.4 percent, following a 1.5 percent in the June quarter,
supported by sufficient amount of investment in machinery as well as in equipment (1.5
percent from 3.3 percent) and that in other products (0.6 percent from 0.9 percent).

Meantime, construction investment contracted by 0.4 percent, after a 0.5 percent rise in
Q2. As per statistical research, the German economy has undertaken a major
expansion of 0.8 percent on first quarter in 2017, following a 0.6 percent growth in the
previous period and falling back market expectations of a 0.6 percent expansion.
Results of estimate indicate various contributions which are mainly derived from fixed
investments and trade while household consumption and government spending were
stable. Study as well as analysis of the above factors, it clearly indicates the impacts of
business growth as well as the development of business development functions.
Ethical considerations
As per research as well as statistical research on various factors the economy
associated with German, it undertook a major expansion of 0.8 percent. In September
quarter of 2017, following a 0.6 percent growth in the present period and defeating
market expectations of a 0.6 percent expansion. In addition to the factors appropriate
code of conducts as well as work-related ethics plays an important role in business
expansion and development. In Germany a “Code of Conduct” is followed in Germany.
Programs such as Anti-corruption programmes are established by the government of
Germany.
Li et al. (2014, p.100) commented that proposition as well as initiative towards zero
tolerance and action to corruption is strictly obeyed in all places of Germany. Epifanova
et al. (2015, p.137) mentioned that, corruption free country along with initiatives towards
the attraction of business clients. In Germany, in addition to that, public is assured of
corruption free services. Both the Code of Conduct and the Mission Statement are
followed in Germany Apart from that instruments along with Training are offered
Structural challenge of expansion
Expansion and development of Marvin and Smith's coffee shop in Germany imply more
emphasis towards German foods and snacks. Normally in the UK it mainly deals with
majority of English products. Upon its relocation to Germany, products directed towards
German people are necessary to be launched for gaining public attraction. In addition to
that popular products Germany will have to be taken into consideration as well.
Communication, as well as interaction with new clients and driving them towards the

coffee shop, consists of main part of a promotion of products. The promotion should be
mainly directed towards distribution of leaflets as well as pamphlet
Marketing mix strategy in relation to the coffee shop expansion plan
Review et al. (2015, p.107) commented that strategies and various programs are
associated to the marketing mix.It consists certain sets of actions, tactics or certain
specific guidelines that a company uses regarding promotion of its brand or products in
the targeted market conditions. It consists of concepts related to 4Ps, which typically
forms a typical marketing mix plan. Marketing mix strategy includes Product, Price,
Promotion, and Place.
Product
Li et al. (2014, p.100) commented that products comprise the first step associated with
marketing mix strategy. It lays as well as explains the products which are necessary to
deal with. Selection as well choice of products must be such that it is able to satisfy the
needs of the public associated with the targeted market. Expansion and development of
Marvin and Smith's coffee shop in Germany imply more emphasis towards German
foods and snacks. Normally in the UK it mainly deals with hot drinks such as tea,
cappuccino, sandwiches, and pasta. In Germany products comprising of snacks such
as such as Spätzle, Bratwurst, Bratkartoffeln and Rouladen are necessary to be
launched for gaining public attraction. In addition to that popular desserts in Germany
such as Black Forest cake, Bremer Klaben, Brenner are necessary as well.
Price
The second element of the marketing mix consists of a price. As mentioned by
Epifanova et al. (2015, p.137) price is very important as it directly influences the
profitability as well as popularity associated with the coffee shop. According to survey as
well as reports on various factors, popular coffee shops in and around Berlin are of Oliv
Café, Konditorei und Cafe Buchwald, Brotgarten and Weichardt Brot. As a result, the
owners of Marvin and Smith’s coffee shop must consider as well as identify its
competitors regarding facilities as well as prices adopted by them and fix its own price
accordingly. The pricing strategies are necessary to be followed such a way such that, it
is able to establish itself in Germany. As a result, normally a fruit salad should not

exceed 2 - 3 EUR. The typical price for coffee and other beverages ranges from 2 - 3
EUR. Meat, as well as grilled products, costs approximately 5 EUR. The pricing of
products must lie within the price range and also should comply with its location as well.
Promotion
Promotion is a part of marketing mix strategy, which mainly deals with appropriate
communication with all its new clients. Communication, as well as interaction with new
clients and driving them towards the coffee shop, consists of main part of a promotion of
products. The promotion should be mainly directed towards the distribution of leaflets as
well as pamphlets. As it is relatively new in Germany, sufficient amount of money may
be lost in an advertisement. It is necessary to develop a small and effective start
Place
The location should be chosen such a way such that, it offers sufficient amount of traffic
as well as visitors throughout the entire year. Presence as well as the existence of
similar coffee shops and its products necessary to be determined before selection of
appropriate place. The place should be selected such as nearby to an institute and
offices. Places having facilities such as public Wi-FI. Parking garage or nearer to
shopping malls. Stress as well as emphasis should be given to places having no
refreshment centers till date
Organisation Culture
Song et al. (2017, p.200) illustrated that The culture, as well as the values of the
organisation, plays an important role in shaping as well as the development of
organizational practices. Here, it is observed a case of Marvin and Smith's coffee shop,
run by Hank and Patty, the culture of the organization is directed towards offering best
products to the customer's Products comprising of High quality tea and herbal
products are obtained from Fairtrade registered Foundations in Eastern Uganda and,
where possible. East African inspired snacks as well as products such as snacks,
pastries and cold drinks fresh mango juice is offered.towards their clients and
customers. The impacts associated with expansion of business domains in Germany
will affect some of its functions. The culture of the organisation which was present in
UK, may not be sufficiently the same in Germany. Along with addition of products

directed towards German culture, the culture of the organisation will undergo sufficient
amount of change. Sufficient impacts associated to culture of the organisation will be
depicted. Materials as well as its food products are directed towards German food
culture as well as tradition. Apart from that values as well as the languages of the coffee
shop will undergo significant amount of changes German culture as well as tradition will
be followed in the coffee shop. In addition to that sufficient approach is directed
towards German languages. The culture as well as tradition of the coffee shop will face
considerable amount of changes with its expansion
Structure of management
The structure of the management plays an important role of determination as well as
representation of organisational culture as well as traditions. The coffee shop while its
services in UK, the management structure of the shop is likely to change.
Application of financial information towards evaluation of impacts of
profitability and liquidity on decisions making
Studying as well as due considerations of the coffee shop in UK lays sufficient
emphasis towards an analysis of financial as well as budgetary statements. It is
observed that total assets of the organisation stands to about 113.000. The estimated
capital of the coffee shop is about 100.000. As observed from the financial statement
with emphasis on income statement on December 31 2016. It is observed that the
Gross profit of the coffee shops stands to about 208,000. The deductions associated
with its contents are namely Electricity Salaries & Wages Rent and Rates, telephone
bills as well as depreciation for payment amounts to about 181.200. The net profits
earned by the coffee shop mainly stands to 26.800. It is noted that among all expenses,
cost associated with Rents are maximum among all other expenses. Effective decision
is necessary to be taken regarding costs associated with rents of the shop is necessary
to be minimized.

Conclusion
This study lays sufficient emphasis towards planning as well as development of factors
towards expansion of the coffee shop far around the Europe. Initiative is directed
towards expansion of its business to other parts of Europe. Among all other countries in
Europe, Germany stands out to the most effective one in terms of GDP as well as other
statistics. Statistical research indicates that the German economy it undertook a major
expansion. Factors as well as statistics indicate the growth of German economy.
Continuous rate of growth will result in business development . An addition to these
factors, in Germany a “Code of Conduct” is followed. Apart from that Programs are
directed towards Anti-corruption programmes. These practices are established by the
government of Germany. Resolution as well as proposition to zero tolerance and action
to corruption is strictly obeyed in all places of Germany. Initiatives towards reduction
towards corruption will attract business from all parts of the world. The coffee shop while
expanding its branch Germany will be able to carry out business activities free from any
disturbances resulting from corruption.
Expansion of Marvin and Smith’s coffee shop in Germany implies more emphasis
towards German foods and snacks. Normally in UK it mainly deals with hot drinks such
as tea, milkshake, latte, cappuccino, sandwiches and pasta basically more emphasis
towards English products. In expansion to Germany, selection of products such as
products comprising of snacks such as such as Spätzle, Bratwurst, Bratkartoffeln and
Rouladen is necessary to be launched for gaining public attraction. In addition to that
popular desserts in Germany such as Black Forest cake, Bremer Klaben, Brenntar are
necessary as well.

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